Oil prices surge ahead of inventories data

(MENAFN- AFP) Oil prices soared Tuesday on expectations that US crude inventories dropped last week, traders said, with support coming also from hopes of Chinese stimulus.

US benchmark West Texas Intermediate for delivery in July jumped $1.96 to $60.10 a barrel compared with Monday's close.

Brent North Sea crude for July won $1.99 to stand at $64.68 a barrel in late London deals.

"Expectations of another draw in oil inventories... is helping underpin prices," said Michael Hewson, chief market analyst at traders CMC Markets.

The US Department of Energy on Wednesday publishes weekly data on commercial energy stockpiles in the United States, the world's biggest consumer of crude.

Supporting prices also were data Tuesday showing that Chinese inflation fell to 1.2 percent in May, the latest sign that growth in the world's number two economy is stalling and suggesting more monetary easing may be on the way.

Oil prices had fallen on Monday as the market weighed last week's OPEC meeting.

Investors continue to mull the impact on prices after the 12-nation Organization of the Petroleum Exporting Countries (OPEC) on Friday defied calls to cut output despite the big drop in crude prices since last year.

"The resilience in oil prices continues to surprise despite OPEC pledging to keep production levels at their current levels," said Hewson.